Free Tool
Break-Even Calculator
Calculate your break-even point in units and revenue based on fixed costs, variable costs, and selling price.
US$10,000
US$500US$500,000
Rent, salaries, insurance, loan payments, and other costs that don't change with sales volume
US$25.00
US$0US$1,000
Materials, labor, shipping, and other costs that vary with each unit sold
US$50.00
US$1US$5,000
Break-Even Point
400 units
Break-Even Revenue
US$20,000/mo
Margin Per Unit
US$25.00
Margin %
50.0%
Units to Break-Even
0 units (loss)400 (break-even)800 (profit)
Frequently Asked Questions
The break-even point is the number of units you need to sell (or revenue you need to earn) to cover all your costs — both fixed and variable. Below this point you're operating at a loss; above it, you're generating profit.
Fixed costs stay the same regardless of how many units you sell — rent, salaries, insurance, loan payments. Variable costs change with each unit produced or sold — materials, shipping, sales commissions, packaging.
You can lower your break-even point by reducing fixed costs, reducing variable cost per unit, or increasing your selling price. Improving operational efficiency, negotiating supplier prices, or finding lower-cost facilities are common strategies.
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